The resumption of crude exports through the Iraq-Turkey oil pipeline (ITP) remains stalled, with Iraq’s oil ministry attributing the delay to foreign oil firms operating in the Kurdistan region for failing to submit contracts for revision. The ITP, which previously handled a significant portion of global oil supply, has been inactive since March 2023 due to legal and financial uncertainties stemming from a ruling by the International Chamber of Commerce against Ankara. The arbitration case found Turkey in violation of a 1973 treaty by facilitating oil exports without the consent of Iraq’s federal government. Despite efforts to resolve the impasse, the oil ministry noted that foreign companies and Kurdish authorities have yet to submit contracts for review, a necessary step following court rulings invalidating agreements with the Kurdistan Regional Government. The ongoing dispute has led to financial obligations for Iraq, estimated at around $25 million per month, owed to Turkey as long as the pipeline remains operational. The Association of the Petroleum Industry of Kurdistan (APIKUR) has highlighted the lack of progress in reopening the ITP, emphasizing the need for payment assurances and adherence to commercial terms for oil exports. As Iraq’s Prime Minister prepares to meet with U.S. President Biden in April, discussions are expected to cover financial reforms, coalition presence in Iraq, and efforts to reduce Iranian influence in the region. APIKUR has urged the White House to prioritize the resumption of pipeline operations and payment guarantees before proceeding with the scheduled meeting.
Iraq and Oil Firms Clash Over Delayed Resumption of Turkey Pipeline Operations